What is Human Resource Management (HRM)?
HRM is the strategic approach to managing people in an organisation, focusing on recruitment, development, motivation, and retention to achieve organisational goals.
List the core functions of HRM.
Recruitment & selection, training & development, performance management, compensation & benefits, employee relations, compliance with labour laws.
How has HRM evolved from ‘personnel management’?
Personnel management was administrative and rule-based; HRM is strategic, integrated, and focuses on developing people as assets for competitive advantage.
Why is HRM important in modern organisations?
Because competitive advantage often lies in employees’ knowledge, skills, and commitment rather than products or technology.
What are the three components of HR architecture?
Define ‘intellectual capital’.
The ability of employees to apply and transform their knowledge and understanding into something valuable for the organisation.
Which four criteria clarify HRM’s contribution to success?
Efficiency, effectiveness, adaptability, and congruence (fit).
Give an example of HRM efficiency measure.
Cost of HR input vs. sales revenue generated, or employee productivity ratios.
What is HRM effectiveness?
Doing the right things — whether HR systems fulfil their purpose and achieve intended outcomes.
What is HRM adaptability?
The ability of HR systems to adjust to external changes (political, economic, social, technological, legal, environmental).
What is HRM congruence?
The degree to which HR systems and subsystems fit together and support strategic goals.
List key responsibilities of an HR department.
Planning, staffing, diversity management, performance management, training & development, labour relations, compliance.
Name additional HR responsibilities.
Employee incentives, dismissal/redundancy, grievance handling, policy development, job analysis, record keeping.
What skills are required of HR professionals?
Strategic thinking, policy formulation, job analysis, legal knowledge, performance management, communication, motivation, conflict management, change management.
Why is HRM considered a strategic partner today?
Because HR policies and practices are integrated into organisational strategy, driving value for shareholders, employees, and customers.
Which external trends shape HRM strategies?
Cross-border employment, workforce diversity, outsourcing, flexible work, career focus, innovative compensation, team-based structures.
Define human capital vs human resources.
Human capital = employees’ knowledge, skills, and capabilities. Human resources = organisational asset representing people employed.
What factors contribute to successful people management?
Motivation, fairness, communication, leadership, organisational culture, HR policies, compliance with law.
Why do people behave differently in the workplace?
Differences in personality, attitudes, values, cognitive abilities, emotions, cultural backgrounds, and external circumstances.
What is behavioural science in HR?
Application of psychology, sociology, economics, and related disciplines to understand and manage employee behaviour.
Give an example of behavioural science in HR.
Using psychology to design motivation systems, or sociology to understand group dynamics in teams.
Define personality in HR terms.
Relatively stable behavioural patterns shaped by biology, environment, and values, influencing work preferences and effectiveness.
How do cognitive abilities affect workplace performance?
They influence problem-solving, decision-making, memory, attention, and adaptability in tasks.
Define attitudes in the workplace.
Learned predispositions to respond favourably or unfavourably to people, objects, or situations, shaped by values and beliefs.